Discussion:Defeferred finance charges included in depreciable basis - Co. Van - YES?

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Discussion Forum Index --> Advanced Tax Questions --> Defeferred finance charges included in depreciable basis - Co. Van - YES?
Discussion Forum Index --> Tax Questions --> Defeferred finance charges included in depreciable basis - Co. Van - YES?

Dude7707 (talk|edits) said:

11 April 2008
T/P purchase Chev Van for his Sch C, as follows:

Base Price & taxes, & fees - 24,000 Finance Charges - 6,000 

Total                       30,000


Originally it was setup for 22,000 - base price however I feel it should be caitalized for the total costs of $30k.

No money was paid up front...all financed.


Am I correct?

RoyDaleOne (talk|edits) said:

11 April 2008
You are not correct.

Based on your statement of the facts Van $24,000.

The rest is interest over the life of the loan.

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